NEW YORK (AdAge.com) -- In the short history of online TV-watching, one standard has largely held fast: Shows that run online have significantly fewer ads than shows that run on the boob tube.
But that could soon change.
Starting this fall, Nielsen intends to start making available data that take into account viewing of commercials that run in a particular show, no matter whether they are seen online or on TV. The data will be made available for evaluation starting this September and are intended to become the basis for ad negotiations in February 2011.
But here's the catch: For Nielsen to be able to provide the commercial rating, shows seen online will have to have the same group of commercials that run on TV. If this system were adopted en masse -- and it's not clear that it would be -- online viewing might be crammed just as full of commercials as the more traditional TV-watching experience.Read more: http://www.businessinsider.com/get-ready-for-more-commercials-on-web-videos-2010-2?utm_source=feedburner#ixzz0aSvs6yAh
I for one am not very big on watching videos from the web, however I see its perks but if many consumer have been grown used to getting online video with limited commercials increasing ads would then make the webs have very little difference from television but the two industires have to make money I suppose the question is how??
3 comments:
Good article! I really liked the argument that was made in the article that online viewers appreciate the convenience more than the lack of commercials. I never thought of that, but I definitely watch for the convenience. I can find whatever content I want whenever I want to find it.
To this point, do you think people may deal with watching more commercials in order to maintain this convenience? When it is put in this context, I think I would!
I agree with Scotty this was a good article. I was suprised to see that more people were willing to watch more commercials just for the convience. When I was reading the beginning of the article I thought that the idea was doomed to failure. i am in the small percentile who would rather have fewer commercials. If it came down to watching the content online without the ability to skip the commericals I would rather just record it on DVR. If I am unable to do that then i would probably not watch the show. I guess it depends on how bad I want to watch the show. If there is a larger part of the consumers that feel like me than they should look at alternative sources of making money.
The issue of the presence of advertisements in internet video can be summed up by a statement made in that article by Jack Wakshlag, chief research officer for Time Warner's Turner Broadcasting: "The financial models used for the current large video hubs in the online space are not sustainable.” We’ve discussed this in class time and time again, and the traditional means of advertisements being found only in traditional television programs is indeed a broken model. Reading on it was interesting to see the “TV Everywhere” concept being embraced by Time Warner and Comcast is one of the main causes of the shift to increased commercials found in online TV. The article stated that “Under the plan, cable subscribers would be able to watch their favorite shows via broadband for no extra fees, while non-subscribers would be blocked. If the media companies can use this idea to control how consumers watch TV programming, they may also be able to force a more traditional amount of advertising on them, too.”
In my opinion, this is a step toward the inevitable future of advertising in television. With more and more people choosing online outlets rather than watching programs that have been digitally recorded or in real time, the growing popularity of using one “monitor” for both television viewing and as an output for your laptop, and the overall shift to having all media (television, music, internet, etc.) found in one product, we are seeing the beginning stages of a dramatic overhaul in advertisement in television.
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